This report discusses British Airways in a strategic context whilst producing organisational and environmental audits on the case study. Furthermore it identifies the stakeholders and suggests a business strategy for the organisation. Finally timescales are proposed to achieve and monitor the strategy for the context of British Airways whilst identifying the resource requirements. This report is part of the BTEC Higher National Diploma series by the author and relates to Unit 7 - Business Strategy.
Table of Contents
1. Introduction
2. Strategic Context
3. Strategic Planning Issues
4. Planning Techniques
5. Organisational Audit
6. Environmental Audit
7. Stakeholders
8. Alternative Strategies
9. Horizontal Integration
10. Resource Requirements
11. Targets and Timescales
12. Conclusion
Research Objective and Key Themes
This case study analyzes British Airways within a strategic context by conducting comprehensive organizational and environmental audits. The primary objective is to evaluate the company's current strategic position, identify key stakeholders, and propose a viable business strategy, including necessary resource requirements and performance-monitoring timescales.
- Strategic analysis of British Airways' market position.
- Application of BCG and SPACE matrices for strategic planning.
- Assessment of organizational, financial, and environmental audit factors.
- Development of a horizontal integration strategy and implementation roadmap.
Excerpt from the Book
3. Strategic Planning Issues
An issue in strategic planning which may impact BA is the internal resources of the company. For instance if the company’s plane’s jets have become low in quality and Boeing only produces one type of jet then BA would have to find an alternative supplier. Therefore the company would have to research on alternative suppliers and decide on the best price for quality and decide on how much of the jets are required and how long it would take to attach the jets to their existing fleet.
Another issue in strategic planning is the individuals who should be involved. For example if BA decides to introduce a new business strategy then they must decide who should be involved in the planning of the strategy. May (2010) suggests to decide on who should be involved would take a lot of time since the company must decide what departments will be impacted by the new strategy and who would be able to implement the strategy.
The final issue of strategic planning is the external environment. This is an issue due to the fact that the external environment is volatile and is affected by extreme variables. For instance if BA have carried out research on the market determining that the current prices are adequate enough to generate their interest and decide to keep them but suddenly a rise in tax has been announced and the market want to purchase budget airline tickets then the research must be carried out again as to how much they are willing to spend and what methods can BA use to cut their prices.
Summary of Chapters
1. Introduction: Outlines the scope of the assignment, focusing on strategic analysis, audit procedures, stakeholder identification, and strategic goal setting.
2. Strategic Context: Examines British Airways' vision, philosophy, core competencies, and market status as a premium global airline.
3. Strategic Planning Issues: Discusses internal resource constraints, stakeholder involvement in strategy formulation, and the volatility of the external market environment.
4. Planning Techniques: Evaluates the application of the BCG Growth-Share Matrix and the SPACE matrix to determine BA's competitive positioning.
5. Organisational Audit: Analyzes the company’s physical assets, human resources, financial health, and intellectual capital.
6. Environmental Audit: Reviews BA’s carbon footprint initiatives and environmental sustainability progress through waste reduction and efficiency programs.
7. Stakeholders: Maps key stakeholder interests and the importance of conducting stakeholder analysis to manage organizational risks.
8. Alternative Strategies: Explores potential growth avenues including horizontal integration, market development, and divestment options.
9. Horizontal Integration: Details the proposed strategy for BA to gain control over manufacturing and modify aircraft to meet specific market demands.
10. Resource Requirements: Details the human, physical, and financial resources necessary to implement the proposed horizontal integration strategy.
11. Targets and Timescales: Establishes performance indicators and a four-year implementation roadmap for achieving growth targets.
12. Conclusion: Summarizes the necessity of continuous monitoring and strategic evaluation for maintaining long-term competitiveness.
Keywords
British Airways, Strategic Planning, BCG Matrix, SPACE Matrix, Organizational Audit, Environmental Audit, Stakeholder Analysis, Horizontal Integration, Market Share, Carbon Footprint, Resource Requirements, Business Strategy, Aviation Industry, Performance Indicators, Sustainability.
Frequently Asked Questions
What is the primary focus of this case study?
The study provides a strategic analysis of British Airways, focusing on how the airline can leverage internal and external audits to refine its long-term business strategy.
Which strategic frameworks are applied in the analysis?
The author utilizes the BCG Growth-Share Matrix to analyze market position and the SPACE matrix to evaluate financial and industry strength.
What is the main objective of the proposed business strategy?
The proposed strategy centers on horizontal integration, aiming to grant British Airways greater control over aircraft production and customization to meet specific customer needs.
Which key stakeholders are identified?
The study highlights customers, employees, suppliers, and shareholders as the critical groups that must be managed or kept informed to ensure strategic success.
What role does the environment play in the strategy?
Environmental factors, such as carbon footprint reduction and market volatility, are considered essential variables that dictate the feasibility of business operations and pricing.
How does the company plan to monitor the new strategy?
Monitoring is to be conducted through Key Performance Indicators (KPIs), specifically tracking aircraft production levels, market share percentage, and profit margins on an annual basis.
Why is horizontal integration recommended for British Airways?
It is suggested because it reduces dependency on external suppliers and allows the airline to differentiate its service offerings through proprietary innovation.
What are the identified resource requirements for the proposed plan?
The strategy requires human resources (skilled experts and full-time workers), physical resources (production factories), and significant financial investment secured through stock market activity.
- Quote paper
- Amritpal Hayre (Author), 2014, Business Strategy of British Airways. A Case Study, Munich, GRIN Verlag, https://www.grin.com/document/287089
